News

Timing is absolutely crucial – in life, as well as in the arena of financial investments. As mentioned in previous articles, the fine wine investment market is steadily moving into the mainstream of alternative financial investments.

Chateau Petrus recently announced the revision of the distribution of their elite luxury wine. As one of the most highly regarded wines in the world, this move is sure to have industry analysts on high alert. Chateau Petrus is amongst the cream of the crop in the world of fine wines. Although wines from the appellation of Pomerol are not classified, Petrus is ranked as a first growth wine, consistently commanding jaw-dropping prices; the Petrus 1982 is currently valued at around 60,000 € per case of 12 bottles (May 2013).

Henri Jayer should be no stranger to anyone involved in the fine wine industry. Considered by many to be the godfather of Burgundy wines, he passed away in 2006 at the age of 84 years old. Henri Jayer was an innovator and pioneer in the wine trade; his methods strayed from the ordinary, his techniques were cultivated over decades to produce the most luxurious of Burgundy wines, and it is no surprise that as of 2013 he now holds the world record in the most expensive wine ever sold.

As fine wines show a steady gain in popularity in the financial arena, the question and concerns remain – is wine a value investment or pure speculation? To correctly determine the categorization of luxury wine as a financial instrument, one must define the aforementioned terms.

How is wine made? The process of making wine is a long, arduous journey; the steps involved in making wine are relatively simple, however, producing a premier wine such as a Lafite Rothschild, Petrus or Le Pin is extremely complex and the necessary methods and techniques have been perfected over decades, if not centuries.